Preparing for the end of the tax year
There are several annual payroll reporting duties that employers must complete each year. With the tax year ending on 5 April 2026, employers must begin preparing now. Although some tasks seem routine, they carry strict deadlines. Therefore, careful planning helps ensure full compliance and avoids unnecessary penalties.
Key requirements for Annual payroll reporting
One of the most important parts of annual payroll reporting is submitting the final PAYE return for the year. Employers must send the final Full Payment Submission, or FPS, to HMRC on or before the last payday in the 2025–26 tax year. This step closes the payroll records correctly. It also ensures that HMRC receives accurate information about pay, tax, and National Insurance for every employee. Because payroll systems vary, employers should check that their software is fully updated.
Managing employee P60 forms
Another vital requirement is issuing P60 forms to all employees who remain on the payroll on 5 April 2026. Employers must provide these by 31 May 2026. The P60 summarises total pay and tax deducted during the year. It can be provided electronically or in paper form. Employees should keep these documents safe. They may need them for tax credit applications, loan or mortgage evidence, or reclaiming overpaid tax. However, employees who leave before the end of the tax year will not receive a P60. Their P45 already contains the necessary details.
Handling benefits and Class 1A NIC
There are further tasks within annual payroll reporting that employers must not overlook. Employers must report Class 1A National Insurance on taxable benefits given to employees. They must also submit P11D and P11D(b) forms to HMRC. These forms cover benefits such as company cars, private medical insurance, and other non‑cash rewards. The deadline for filing these with HMRC is 6 July 2026. In addition, payment of any Class 1A NIC is due by 22 July 2026 if paying electronically. This timeline gives employers a short window to gather information.
Ensuring complete compliance
These duties remain essential for maintaining accurate payroll records. They also help ensure that both employers and employees meet their tax obligations. Although the list seems long, early preparation makes the process smoother. Employers who track deadlines and maintain organised records can complete their reporting obligations without difficulty.
